The 11.9 billion Swiss franc ($9.4 billion) Canton of Zurich pension fund is doubling the indexed portion of its Swiss equity portfolio to 80%, primarily because of growing concentration in Swiss blue-chip stocks. Once CIBA-Geigy and Sandoz merge (into the renamed Novartis), three companies will comprise nearly 60% of the Swiss Market Index -Novartis, Roche and Nestle. As a result, the Zurich fund will shift 40% of its SF2.4 billion Swiss equity allocation to passive management at the internally managed fund.
In addition, the expected departure of portfolio manager Hans Ochsner this week also affected the fund's thinking. A successor has not been named, but the replacement will take on a greater role in running the fund's domestic and foreign bond portfolios.